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a. |
SATIVUS TECH CORP. (formerly SEEDO CORP.) (the “Company”, “Our” or “We”) was formed on January 16, 2015, under the laws of the State of Delaware. Prior to July 2020, we were involved in producing a plant growing device managed and controlled by an artificial intelligent algorithm, allowing consumers to grow their own herbs and vegetables effortlessly from seed to plant, while providing optimal conditions to assure premium quality produce year-round. However, due to financial and operational difficulties and during 2020, we ceased these operations and on July 19, 2020, the Company formed a new wholly-owned subsidiary in Israel, Hachevra Legiduley Pkaot Beisrael Ltd. (the “New Subsidiary”), to develop a fully automated and remotely managed system for growing saffron and other vegetables. On November 5, 2020, the New Subsidiary changed its name to Saffron-Tech Ltd. (or “Saffron Tech”). As of the date of this report, and following various financings in Saffron Tech, the Company owns 54% of Saffron Tech. |
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The Company, through Saffron Tech, is focusing
on its in-house research and development of agriculture technology products, among others, in the fields of exotic plants and mushrooms.
Saffron Tech plans to roll out its proof of concept in the coming months. This technology will provide turnkey automated growing containers
for high-quality, high-yield saffron all year round. The Company is in advanced stages of developing and testing a fully automated and
remotely managed system for growing high-quality, high-yield saffron anywhere and anytime.
It is also environmentally friendly, using economic
levels of water, space, fertilizer, and energy. Accounting to the Company’s calculations, we believe that the controlled indoor
growing area will produce ten times more yield compared to the same land area using traditional methods. The sealed environment eliminates
the need for harmful pesticides and herbicides, producing a clean and safe product that is easy to control from anywhere. The Company’s
solution is easily scalable and pre-designed to quickly grow operations.
Saffron is used in many industries, such as the
food industry, particularly by famous chefs and Michelin starred restaurants, the natural cosmetics industry and the food supplements
industry and as a dye in the textile industry. Medicinal claims as an anti-depressant, antioxidant, and antiseptic are constantly increasing. |
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b. |
The Company has an accumulated deficit in the total amount of $23,941 as of June 30, 2025, the Company has negative operating cash flow in the total amount of $86 for the three months ended June 30, 2025, further losses are anticipated in the development of its business. Those factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. |
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The Company intends to finance operating costs
over the next twelve months with existing cash on hand, reducing operating spend, and future issuances of equity and debt securities,
or through a combination of the foregoing. However, the Company will need to seek additional sources of financing if the Company requires
more funds than anticipated during the next 12 months or in later periods.
The accompanying condensed consolidated financial
statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and
liabilities and commitments in the normal course of business.
The consolidated financial statements for the
three months ended June 30, 2025, do not include any adjustments to reflect the possible future effects on the recoverability and classification
of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to
continue as a going concern. |
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